Reports say an Indian labourer indebted to the throat set himself and his family ablaze because his creditor was on his neck.

According to local media, the man Esakimuthu, lost his wife Subbulakshmi and daughters Mathi Saranya, 4 and Akshaya Bharanitha, 18 months, on fire, while he suffered serious burns and is battling for life at Tirunelveli Medical College Hospital.

They were driven to the extreme step by a loan shark who harassed them even after complaints were lodged against the usurer with the police and district collector several times, sources said.

According to the police, the 27-year-old, who is apparently working in a mill in Coimbatore, brought his wife and two daughters to the district collectorate when a grievance redressal meeting was underway around 10.30 am.

Suddenly, Esakimuthu emptied a can of kerosene on him and family, and set them all ablaze. As the family of four went up in flames the police deployed at the collectorate had to sweat to snuff out the flames and rush them to the medical college hospital. However, the mother and daughters died by evening. Esakimuthu has suffered around 75 per cent burns and is said to be in critical condition.

Sources Esakimuthu had borrowed Rs 1.45 lakh from a moneylender Muthulakshmi to help a kin. Though he reportedly repaid Rs 2.34 lakh towards principal and interest, the woman harassed him demanding to pay Rs 2 lakh more to settle the outstanding.

Esakimuthu had lodged a complaint against Muthulakshmi with the Achchanpudhur police. He also submitted petitions to the district collector several times but to no avail.